Luxury Market Regains Momentum As US Demand Outperforms Forecasts

The global personal luxury goods market is showing early signs of recovery in the second quarter, even as geopolitical tensions continue to weigh on consumer confidence. According to Bain & Company, stronger-than-expected demand in the United States has helped offset weakness in other major markets.

In its latest annual outlook, Bain said its base-case scenario now forecasts personal luxury sales to grow by between 2% and 4% this year. That compares with a previous projection of 3% to 5%, published in November before the outbreak of the U.S.-Israeli war on Iran reshaped the macroeconomic outlook.

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Valued at €358 billion ($406 billion) in 2025, the global personal luxury goods market has contracted over the past two years. At current exchange rates, sales declined by 2% in 2025, although they increased by 1% at constant exchange rates, highlighting the impact of currency movements on the sector’s overall performance.

Experiences Continue To Outperform Products

Spending on experiences continues to outpace purchases of luxury goods, according to the report, which Bain prepared in partnership with Italian luxury association Altagamma. The findings suggest consumers are becoming more selective, directing discretionary spending toward travel, hospitality and other experience-led services rather than exclusively toward handbags, watches and apparel.

“We see growing uncertainty and turmoil at the macroeconomic and socio-political levels, but the market is there,” Bain partner Francesca Levato told Reuters.

The U.S. Leads While Europe Remains Under Pressure

Stronger-than-expected growth in the United States, supported by domestic brands and younger consumers, is helping offset weaker demand in Europe and the Middle East. China is also showing gradual signs of recovery, with ready-to-wear outperforming leather goods as consumer preferences continue to evolve.

“America is growing more than expected, and China is recovering faster than expected,” Levato said.

Europe, meanwhile, continues to face weaker tourist flows, although Bain reported signs of stabilisation in May.

Luxury Brands Face A Smaller Customer Base

According to Levato, the luxury industry has lost around 70 million consumers since 2022 as brands increased prices and focused more heavily on their highest-spending customers. While that strategy may have supported margins, it also reduced the industry’s consumer base.

“The industry should refuel the growth of the consumer base rather than focus only on the top 1 per cent,” she said.

AI And Resale Continue To Influence Buying Decisions

The report also points to the growing role of artificial intelligence in luxury shopping. Around half of luxury consumers already use AI during the purchasing process, primarily to discover brands and compare products.

Resale is also becoming increasingly influential. Half of luxury shoppers now consult second-hand marketplaces before purchasing new items, reflecting the expanding role of pre-owned goods in consumers’ buying decisions.

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Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

by THEFUTURE.TEAM

October 23, 2026

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

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A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

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